PERSONAL AUTO
PP 00 01 06 98
PP 00 01 06 98
Copyright, Insurance Services Office, Inc., 1997
Page 1 of 12
PERSONAL AUTO POLICY
AGREEMENT
In return for payment of the premium and subject to all the terms of this policy, we agree with you as follows:
DEFINITIONS
A. Throughout this policy, "you" and "your" refer to:
1. The "named insured" shown in the Declara-
tions; and
2. The spouse if a resident of the same house-
hold.
If the spouse ceases to be a resident of the same
household during the policy period or prior to the
inception of this policy, the spouse will be consid-
ered "you" and "your" under this policy but only
until the earlier of:
1. The end of 90 days following the spouse's
change of residency;
2. The effective date of another policy listing the
spouse as a named insured; or
3. The end of the policy period.
B. "We", "us" and "our" refer to the Company provid-
ing this insurance.
C. For purposes of this policy, a private passenger
type auto, pickup or van shall be deemed to be
owned by a person if leased:
1. Under a written agreement to that person; and
2. For a continuous period of at least 6 months.
Other words and phrases are defined. They are in
quotation marks when used.
D. "Bodily injury" means bodily harm, sickness or
disease, including death that results.
E. "Business" includes trade, profession or occupa-
tion.
F. "Family member" means a person related to you
by blood, marriage or adoption who is a resident
of your household. This includes a ward or foster
child.
G. "Occupying" means in, upon, getting in, on, out or
off.
H. "Property damage" means physical injury to, de-
struction of or loss of use of tangible property.
I. "Trailer" means a vehicle designed to be pulled by
a:
1. Private passenger auto; or
2. Pickup or van.
It also means a farm wagon or farm implement
while towed by a vehicle listed in 1. or 2. above.
J. "Your covered auto" means:
1. Any vehicle shown in the Declarations.
2. A "newly acquired auto".
3. Any "trailer" you own.
4. Any auto or "trailer" you do not own while used
as a temporary substitute for any other vehicle
described in this definition which is out of nor-
mal use because of its:
a. Breakdown;
b. Repair;
c. Servicing;
d. Loss; or
e. Destruction.
This Provision (J.4.) does not apply to Cover-
age For Damage To Your Auto.
K. "Newly acquired auto":
1. "Newly acquired auto" means any of the follow-
ing types of vehicles you become the owner of
during the policy period:
a. A private passenger auto; or
b. A pickup or van, for which no other insur-
ance policy provides coverage, that:
(1) Has a Gross Vehicle Weight of less
than 10,000 lbs.; and
(2) Is not used for the delivery or transpor-
tation of goods and materials unless
such use is:
(a) Incidental to your "business" of in-
stalling, maintaining or repairing
furnishings or equipment; or
(b) For farming or ranching.
2. Coverage for a "newly acquired auto" is pro-
vided as described below. If you ask us to in-
sure a "newly acquired auto" after a specified
time period described below has elapsed, any
coverage we provide for a "newly acquired
auto" will begin at the time you request the
coverage.
a. For any coverage provided in this policy
except Coverage For Damage To Your
Auto, a "newly acquired auto" will have the
broadest coverage we now provide for any
vehicle shown in the Declarations. Cover-
age begins on the date you become the
owner. However, for this coverage to apply
to a "newly acquired auto" which is in addi-
tion to any vehicle shown in the Declara-
tions, you must ask us to insure it within 14
days after you become the owner.
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Copyright, Insurance Services Office, Inc., 1997
PP 00 01 06 98
If a "newly acquired auto" replaces a vehi-
cle shown in the Declarations, coverage is
provided for this vehicle without your hav-
ing to ask us to insure it.
b. Collision Coverage for a "newly acquired
auto" begins on the date you become the
owner. However, for this coverage to apply,
you must ask us to insure it within:
(1) 14 days after you become the owner if
the Declarations indicate that Collision
Coverage applies to at least one auto.
In this case, the "newly acquired auto"
will have the broadest coverage we now
provide for any auto shown in the Dec-
larations.
(2) Four days after you become the owner
if the Declarations do not indicate that
Collision Coverage applies to at least
one auto. If you comply with the 4 day
requirement and a loss occurred before
you asked us to insure the "newly ac-
quired auto", a Collision deductible of
$500 will apply.
c. Other Than Collision Coverage for a "newly
acquired auto" begins on the date you be-
come the owner. However, for this cover-
age to apply, you must ask us to insure it
within:
(1) 14 days after you become the owner if
the Declarations indicate that Other
Than Collision Coverage applies to at
least one auto. In this case, the "newly
acquired auto" will have the broadest
coverage we now provide for any auto
shown in the Declarations.
(2) Four days after you become the owner
if the Declarations do not indicate that
Other Than Collision Coverage applies
to at least one auto. If you comply with
the 4 day requirement and a loss oc-
curred before you asked us to insure the
"newly acquired auto", an Other Than
Collision deductible of $500 will apply.
PART A – LIABILITY COVERAGE
INSURING AGREEMENT
A. We will pay damages for "bodily injury" or
"property damage" for which any "insured" be-
comes legally responsible because of an auto ac-
cident. Damages include prejudgment interest
awarded against the "insured". We will settle or
defend, as we consider appropriate, any claim or
suit asking for these damages. In addition to our
limit of liability, we will pay all defense costs we
incur. Our duty to settle or defend ends when our
limit of liability for this coverage has been ex-
hausted by payment of judgments or settlements.
We have no duty to defend any suit or settle any
claim for "bodily injury" or "property damage" not
covered under this policy.
B. "Insured" as used in this Part means:
1. You or any "family member" for the ownership,
maintenance or use of any auto or "trailer".
2. Any person using "your covered auto".
3. For "your covered auto", any person or organi-
zation but only with respect to legal responsi-
bility for acts or omissions of a person for
whom coverage is afforded under this Part.
4. For any auto or "trailer", other than "your cov-
ered auto", any other person or organization
but only with respect to legal responsibility for
acts or omissions of you or any "family mem-
ber" for whom coverage is afforded under this
Part. This Provision (B.4.) applies only if the
person or organization does not own or hire the
auto or "trailer".
SUPPLEMENTARY PAYMENTS
In addition to our limit of liability, we will pay on be-
half of an "insured":
1. Up to $250 for the cost of bail bonds required
because of an accident, including related traf-
fic law violations. The accident must result in
"bodily injury" or "property damage" covered
under this policy.
2. Premiums on appeal bonds and bonds to re-
lease attachments in any suit we defend.
3. Interest accruing after a judgment is entered in
any suit we defend. Our duty to pay interest
ends when we offer to pay that part of the
judgment which does not exceed our limit of li-
ability for this coverage.
4. Up to $200 a day for loss of earnings, but not
other income, because of attendance at hear-
ings or trials at our request.
5. Other reasonable expenses incurred at our
request.
EXCLUSIONS
A. We do not provide Liability Coverage for any
"insured":
1. Who intentionally causes "bodily injury" or
"property damage".
2. For "property damage" to property owned or
being transported by that "insured".
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Page 3 of 12
3. For "property damage" to property:
a. Rented to;
b. Used by; or
c. In the care of;
that "insured".
This Exclusion (A.3.) does not apply to
"property damage" to a residence or private
garage.
4. For "bodily injury" to an employee of that
"insured" during the course of employment.
This Exclusion (A.4.) does not apply to "bodily
injury" to a domestic employee unless workers'
compensation benefits are required or avail-
able for that domestic employee.
5. For that "insured's" liability arising out of the
ownership or operation of a vehicle while it is
being used as a public or livery conveyance.
This Exclusion (A.5.) does not apply to a
share-the-expense car pool.
6. While employed or otherwise engaged in the
"business" of:
a. Selling;
b. Repairing;
c. Servicing;
d. Storing; or
e. Parking;
vehicles designed for use mainly on public
highways. This includes road testing and deliv-
ery. This Exclusion (A.6.) does not apply to the
ownership, maintenance or use of "your cov-
ered auto" by:
a. You;
b. Any "family member"; or
c. Any partner, agent or employee of you or
any "family member".
7. Maintaining or using any vehicle while that
"insured" is employed or otherwise engaged in
any "business" (other than farming or ranching)
not described in Exclusion A.6.
This Exclusion (A.7.) does not apply to the
maintenance or use of a:
a. Private passenger auto;
b. Pickup or van; or
c. "Trailer" used with a vehicle described in a.
or b. above.
8. Using a vehicle without a reasonable belief
that that "insured" is entitled to do so. This
Exclusion (A.8.) does not apply to a "family
member" using "your covered auto" which is
owned by you.
9. For "bodily injury" or "property damage" for
which that "insured":
a. Is an insured under a nuclear energy liabil-
ity policy; or
b. Would be an insured under a nuclear en-
ergy liability policy but for its termination
upon exhaustion of its limit of liability.
A nuclear energy liability policy is a policy is-
sued by any of the following or their succes-
sors:
a. Nuclear Energy Liability Insurance Asso-
ciation;
b. Mutual Atomic Energy Liability Underwrit-
ers; or
c. Nuclear Insurance Association of Canada.
B. We do not provide Liability Coverage for the own-
ership, maintenance or use of:
1. Any vehicle which:
a. Has fewer than four wheels; or
b. Is designed mainly for use off public roads.
This Exclusion (B.1.) does not apply:
a. While such vehicle is being used by an
"insured" in a medical emergency;
b. To any "trailer"; or
c. To any non-owned golf cart.
2. Any vehicle, other than "your covered auto",
which is:
a. Owned by you; or
b. Furnished or available for your regular use.
3. Any vehicle, other than "your covered auto",
which is:
a. Owned by any "family member"; or
b. Furnished or available for the regular use
of any "family member".
However, this Exclusion (B.3.) does not apply
to you while you are maintaining or
"occupying" any vehicle which is:
a. Owned by a "family member"; or
b. Furnished or available for the regular use
of a "family member".
4. Any vehicle, located inside a facility designed
for racing, for the purpose of:
a. Competing in; or
b. Practicing or preparing for;
any prearranged or organized racing or speed
contest.
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LIMIT OF LIABILITY
A. The limit of liability shown in the Declarations for
each person for Bodily Injury Liability is our
maximum limit of liability for all damages, includ-
ing damages for care, loss of services or death,
arising out of "bodily injury" sustained by any one
person in any one auto accident. Subject to this
limit for each person, the limit of liability shown in
the Declarations for each accident for Bodily In-
jury Liability is our maximum limit of liability for all
damages for "bodily injury" resulting from any one
auto accident.
The limit of liability shown in the Declarations for
each accident for Property Damage Liability is our
maximum limit of liability for all "property dam-
age" resulting from any one auto accident.
This is the most we will pay regardless of the
number of:
1. "Insureds";
2. Claims made;
3. Vehicles or premiums shown in the Declara-
tions; or
4. Vehicles involved in the auto accident.
B. No one will be entitled to receive duplicate pay-
ments for the same elements of loss under this
coverage and:
1. Part B or Part C of this policy; or
2. Any Underinsured Motorists Coverage pro-
vided by this policy.
OUT OF STATE COVERAGE
If an auto accident to which this policy applies occurs
in any state or province other than the one in which
"your covered auto" is principally garaged, we will
interpret your policy for that accident as follows:
A. If the state or province has:
1. A financial responsibility or similar law specify-
ing limits of liability for "bodily injury" or
"property damage" higher than the limit shown
in the Declarations, your policy will provide the
higher specified limit.
2. A compulsory insurance or similar law requir-
ing a nonresident to maintain insurance when-
ever the nonresident uses a vehicle in that
state or province, your policy will provide at
least the required minimum amounts and types
of coverage.
B. No one will be entitled to duplicate payments for
the same elements of loss.
FINANCIAL RESPONSIBILITY
When this policy is certified as future proof of finan-
cial responsibility, this policy shall comply with the
law to the extent required.
OTHER INSURANCE
If there is other applicable liability insurance we will
pay only our share of the loss. Our share is the pro-
portion that our limit of liability bears to the total of all
applicable limits. However, any insurance we provide
for a vehicle you do not own shall be excess over any
other collectible insurance.
PART B – MEDICAL PAYMENTS COVERAGE
INSURING AGREEMENT
A. We will pay reasonable expenses incurred for
necessary medical and funeral services because
of "bodily injury":
1. Caused by accident; and
2. Sustained by an "insured".
We will pay only those expenses incurred for
services rendered within 3 years from the date of
the accident.
B. "Insured" as used in this Part means:
1. You or any "family member":
a. While "occupying"; or
b. As a pedestrian when struck by;
a motor vehicle designed for use mainly on
public roads or a trailer of any type.
2. Any other person while "occupying" "your cov-
ered auto".
EXCLUSIONS
We do not provide Medical Payments Coverage for
any "insured" for "bodily injury":
1. Sustained while "occupying" any motorized
vehicle having fewer than four wheels.
2. Sustained while "occupying" "your covered
auto" when it is being used as a public or livery
conveyance. This Exclusion (2.) does not ap-
ply to a share-the-expense car pool.
3. Sustained while "occupying" any vehicle lo-
cated for use as a residence or premises.
4. Occurring during the course of employment if
workers' compensation benefits are required or
available for the "bodily injury".
5. Sustained while "occupying", or when struck
by, any vehicle (other than "your covered
auto") which is:
a. Owned by you; or
b. Furnished or available for your regular use.
6. Sustained while "occupying", or when struck
by, any vehicle (other than "your covered
auto") which is:
a. Owned by any "family member"; or
b. Furnished or available for the regular use
of any "family member".
However, this Exclusion (6.) does not apply to
you.
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Copyright, Insurance Services Office, Inc., 1997
Page 5 of 12
7. Sustained while "occupying" a vehicle without
a reasonable belief that that "insured" is enti-
tled to do so. This Exclusion (7.) does not ap-
ply to a "family member" using "your covered
auto" which is owned by you.
8. Sustained while "occupying" a vehicle when it
is being used in the "business" of an "insured".
This Exclusion (8.) does not apply to "bodily
injury" sustained while "occupying" a:
a. Private passenger auto;
b. Pickup or van that you own; or
c. "Trailer" used with a vehicle described in a.
or b. above.
9. Caused by or as a consequence of:
a. Discharge of a nuclear weapon (even if
accidental);
b. War (declared or undeclared);
c. Civil war;
d. Insurrection; or
e. Rebellion or revolution.
10. From or as a consequence of the following,
whether controlled or uncontrolled or however
caused:
a. Nuclear reaction;
b. Radiation; or
c. Radioactive contamination.
11. Sustained while "occupying" any vehicle lo-
cated inside a facility designed for racing, for
the purpose of:
a. Competing in; or
b. Practicing or preparing for;
any prearranged or organized racing or speed
contest.
LIMIT OF LIABILITY
A. The limit of liability shown in the Declarations for
this coverage is our maximum limit of liability for
each person injured in any one accident. This is
the most we will pay regardless of the number of:
1. "Insureds";
2. Claims made;
3. Vehicles or premiums shown in the Declara-
tions; or
4. Vehicles involved in the accident.
B. No one will be entitled to receive duplicate pay-
ments for the same elements of loss under this
coverage and:
1. Part A or Part C of this policy; or
2. Any Underinsured Motorists Coverage pro-
vided by this policy.
OTHER INSURANCE
If there is other applicable auto medical payments
insurance we will pay only our share of the loss. Our
share is the proportion that our limit of liability bears
to the total of all applicable limits. However, any
insurance we provide with respect to a vehicle you do
not own shall be excess over any other collectible
auto insurance providing payments for medical or
funeral expenses.
PART C – UNINSURED MOTORISTS COVERAGE
INSURING AGREEMENT
A. We will pay compensatory damages which an
"insured" is legally entitled to recover from the
owner or operator of an "uninsured motor vehicle"
because of "bodily injury":
1. Sustained by an "insured"; and
2. Caused by an accident.
The owner's or operator's liability for these dam-
ages must arise out of the ownership, mainte-
nance or use of the "uninsured motor vehicle".
Any judgment for damages arising out of a suit
brought without our written consent is not binding
on us.
B. "Insured" as used in this Part means:
1. You or any "family member".
2. Any other person "occupying" "your covered
auto".
3. Any person for damages that person is entitled
to recover because of "bodily injury" to which
this coverage applies sustained by a person
described in 1. or 2. above.
C. "Uninsured motor vehicle" means a land motor
vehicle or trailer of any type:
1. To which no bodily injury liability bond or policy
applies at the time of the accident.
2. To which a bodily injury liability bond or policy
applies at the time of the accident. In this case
its limit for bodily injury liability must be less
than the minimum limit for bodily injury liability
specified by the financial responsibility law of
the state in which "your covered auto" is prin-
cipally garaged.
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3. Which is a hit-and-run vehicle whose operator
or owner cannot be identified and which hits:
a. You or any "family member";
b. A vehicle which you or any "family mem-
ber" are "occupying"; or
c. "Your covered auto".
4. To which a bodily injury liability bond or policy
applies at the time of the accident but the
bonding or insuring company:
a. Denies coverage; or
b. Is or becomes insolvent.
However, "uninsured motor vehicle" does not in-
clude any vehicle or equipment:
1. Owned by or furnished or available for the
regular use of you or any "family member".
2. Owned or operated by a self-insurer under any
applicable motor vehicle law, except a self-
insurer which is or becomes insolvent.
3. Owned by any governmental unit or agency.
4. Operated on rails or crawler treads.
5. Designed mainly for use off public roads while
not on public roads.
6. While located for use as a residence or prem-
ises.
EXCLUSIONS
A. We do not provide Uninsured Motorists Coverage
for "bodily injury" sustained:
1. By an "insured" while "occupying", or when
struck by, any motor vehicle owned by that
"insured" which is not insured for this coverage
under this policy. This includes a trailer of any
type used with that vehicle.
2. By any "family member" while "occupying", or
when struck by, any motor vehicle you own
which is insured for this coverage on a primary
basis under any other policy.
B. We do not provide Uninsured Motorists Coverage
for "bodily injury" sustained by any "insured":
1. If that "insured" or the legal representative
settles the "bodily injury" claim without our
consent.
2. While "occupying" "your covered auto" when it
is being used as a public or livery conveyance.
This Exclusion (B.2.) does not apply to a
share-the-expense car pool.
3. Using a vehicle without a reasonable belief
that that "insured" is entitled to do so. This
Exclusion (B.3.) does not apply to a "family
member" using "your covered auto" which is
owned by you.
C. This coverage shall not apply directly or indirectly
to benefit any insurer or self-insurer under any of
the following or similar law:
1. Workers' compensation law; or
2. Disability benefits law.
D. We do not provide Uninsured Motorists Coverage
for punitive or exemplary damages.
LIMIT OF LIABILITY
A. The limit of liability shown in the Declarations for
each person for Uninsured Motorists Coverage is
our maximum limit of liability for all damages, in-
cluding damages for care, loss of services or
death, arising out of "bodily injury" sustained by
any one person in any one accident. Subject to
this limit for each person, the limit of liability
shown in the Declarations for each accident for
Uninsured Motorists Coverage is our maximum
limit of liability for all damages for "bodily injury"
resulting from any one accident.
This is the most we will pay regardless of the
number of:
1. "Insureds";
2. Claims made;
3. Vehicles or premiums shown in the Declara-
tions; or
4. Vehicles involved in the accident.
B. No one will be entitled to receive duplicate pay-
ments for the same elements of loss under this
coverage and:
1. Part A. or Part B. of this policy; or
2. Any Underinsured Motorists Coverage pro-
vided by this policy.
C. We will not make a duplicate payment under this
coverage for any element of loss for which pay-
ment has been made by or on behalf of persons
or organizations who may be legally responsible.
D. We will not pay for any element of loss if a person
is entitled to receive payment for the same ele-
ment of loss under any of the following or similar
law:
1. Workers' compensation law; or
2. Disability benefits law.
OTHER INSURANCE
If there is other applicable insurance available under
one or more policies or provisions of coverage that is
similar to the insurance provided under this Part of
the policy:
1. Any recovery for damages under all such poli-
cies or provisions of coverage may equal but
not exceed the highest applicable limit for any
one vehicle under any insurance providing
coverage on either a primary or excess basis.
2. Any insurance we provide with respect to a
vehicle you do not own shall be excess over
any collectible insurance providing such cov-
erage on a primary basis.
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Page 7 of 12
3. If the coverage under this policy is provided:
a. On a primary basis, we will pay only our
share of the loss that must be paid under
insurance providing coverage on a primary
basis. Our share is the proportion that our
limit of liability bears to the total of all ap-
plicable limits of liability for coverage pro-
vided on a primary basis.
b. On an excess basis, we will pay only our
share of the loss that must be paid under
insurance providing coverage on an excess
basis. Our share is the proportion that our
limit of liability bears to the total of all ap-
plicable limits of liability for coverage pro-
vided on an excess basis.
ARBITRATION
A. If we and an "insured" do not agree:
1. Whether that "insured" is legally entitled to
recover damages; or
2. As to the amount of damages which are re-
coverable by that "insured";
from the owner or operator of an "uninsured motor
vehicle", then the matter may be arbitrated. How-
ever, disputes concerning coverage under this
Part may not be arbitrated.
Both parties must agree to arbitration. If so
agreed, each party will select an arbitrator. The
two arbitrators will select a third. If they cannot
agree within 30 days, either may request that se-
lection be made by a judge of a court having ju-
risdiction.
B. Each party will:
1. Pay the expenses it incurs; and
2. Bear the expenses of the third arbitrator
equally.
C. Unless both parties agree otherwise, arbitration
will take place in the county in which the "insured"
lives. Local rules of law as to procedure and evi-
dence will apply. A decision agreed to by two of
the arbitrators will be binding as to:
1. Whether the "insured" is legally entitled to
recover damages; and
2. The amount of damages. This applies only if
the amount does not exceed the minimum limit
for bodily injury liability specified by the finan-
cial responsibility law of the state in which
"your covered auto" is principally garaged. If
the amount exceeds that limit, either party may
demand the right to a trial. This demand must
be made within 60 days of the arbitrators' de-
cision. If this demand is not made, the amount
of damages agreed to by the arbitrators will be
binding.
PART D – COVERAGE FOR DAMAGE TO YOUR AUTO
INSURING AGREEMENT
A. We will pay for direct and accidental loss to "your
covered auto" or any "non-owned auto", including
their equipment, minus any applicable deductible
shown in the Declarations. If loss to more than
one "your covered auto" or "non-owned auto" re-
sults from the same "collision", only the highest
applicable deductible will apply. We will pay for
loss to "your covered auto" caused by:
1. Other than "collision" only if the Declarations
indicate that Other Than Collision Coverage is
provided for that auto.
2. "Collision" only if the Declarations indicate that
Collision Coverage is provided for that auto.
If there is a loss to a "non-owned auto", we will
provide the broadest coverage applicable to any
"your covered auto" shown in the Declarations.
B. "Collision" means the upset of "your covered auto"
or a "non-owned auto" or their impact with another
vehicle or object.
Loss caused by the following is considered other
than "collision":
1. Missiles or falling objects;
2. Fire;
3. Theft or larceny;
4. Explosion or earthquake;
5. Windstorm;
6. Hail, water or flood;
7. Malicious mischief or vandalism;
8. Riot or civil commotion;
9. Contact with bird or animal; or
10. Breakage of glass.
If breakage of glass is caused by a "collision", you
may elect to have it considered a loss caused by
"collision".
C. "Non-owned auto" means:
1. Any private passenger auto, pickup, van or
"trailer" not owned by or furnished or available
for the regular use of you or any "family mem-
ber" while in the custody of or being operated
by you or any "family member"; or
2. Any auto or "trailer" you do not own while used
as a temporary substitute for "your covered
auto" which is out of normal use because of its:
a. Breakdown;
b. Repair;
c. Servicing;
d. Loss; or
e. Destruction.
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PP 00 01 06 98
TRANSPORTATION EXPENSES
A. In addition, we will pay, without application of a
deductible, up to a maximum of $600 for:
1. Temporary transportation expenses not ex-
ceeding $20 per day incurred by you in the
event of a loss to "your covered auto". We will
pay for such expenses if the loss is caused by:
a. Other than "collision" only if the Declara-
tions indicate that Other Than Collision
Coverage is provided for that auto.
b. "Collision" only if the Declarations indicate
that Collision Coverage is provided for that
auto.
2. Expenses for which you become legally re-
sponsible in the event of loss to a "non-owned
auto". We will pay for such expenses if the loss
is caused by:
a. Other than "collision" only if the Declara-
tions indicate that Other Than Collision
Coverage is provided for any "your covered
auto".
b. "Collision" only if the Declarations indicate
that Collision Coverage is provided for any
"your covered auto".
However, the most we will pay for any ex-
penses for loss of use is $20 per day.
B. If the loss is caused by:
1. A total theft of "your covered auto" or a "non-
owned auto", we will pay only expenses in-
curred during the period:
a. Beginning 48 hours after the theft; and
b. Ending when "your covered auto" or the
"non-owned auto" is returned to use or we
pay for its loss.
2. Other than theft of a "your covered auto" or a
"non-owned auto", we will pay only expenses
beginning when the auto is withdrawn from use
for more than 24 hours.
C. Our payment will be limited to that period of time
reasonably required to repair or replace the "your
covered auto" or the "non-owned auto".
EXCLUSIONS
We will not pay for:
1. Loss to "your covered auto" or any "non-owned
auto" which occurs while it is being used as a
public or livery conveyance. This Exclusion
(1.) does not apply to a share-the-expense car
pool.
2. Damage due and confined to:
a. Wear and tear;
b. Freezing;
c. Mechanical or electrical breakdown or
failure; or
d. Road damage to tires.
This Exclusion (2.) does not apply if the dam-
age results from the total theft of "your cov-
ered auto" or any "non-owned auto".
3. Loss due to or as a consequence of:
a. Radioactive contamination;
b. Discharge of any nuclear weapon (even if
accidental);
c. War (declared or undeclared);
d. Civil war;
e. Insurrection; or
f. Rebellion or revolution.
4. Loss to any electronic equipment designed for
the reproduction of sound and any accessories
used with such equipment. This includes but is
not limited to:
a. Radios and stereos;
b. Tape decks; or
c. Compact disc players.
This Exclusion (4.) does not apply to equip-
ment designed solely for the reproduction of
sound and accessories used with such equip-
ment, provided:
a. The equipment is permanently installed in
"your covered auto" or any "non-owned
auto"; or
b. The equipment is:
(1) Removable from a housing unit which is
permanently installed in the auto;
(2) Designed to be solely operated by use
of the power from the auto's electrical
system; and
(3) In or upon "your covered auto" or any
"non-owned auto" at the time of loss.
5. Loss to any electronic equipment that receives
or transmits audio, visual or data signals and
any accessories used with such equipment.
This includes but is not limited to:
a. Citizens band radios;
b. Telephones;
c. Two-way mobile radios;
d. Scanning monitor receivers;
e. Television monitor receivers;
f. Video cassette recorders;
g. Audio cassette recorders; or
h. Personal computers.
This Exclusion (5.) does not apply to:
a. Any electronic equipment that is necessary
for the normal operation of the auto or the
monitoring of the auto's operating systems;
or
PP 00 01 06 98
Copyright, Insurance Services Office, Inc., 1997
Page 9 of 12
b. A permanently installed telephone designed
to be operated by use of the power from
the auto's electrical system and any acces-
sories used with the telephone.
6. Loss to tapes, records, discs or other media
used with equipment described in Exclusions
4. and 5.
7. A total loss to "your covered auto" or any "non-
owned auto" due to destruction or confiscation
by governmental or civil authorities.
This Exclusion (7.) does not apply to the inter-
ests of Loss Payees in "your covered auto".
8. Loss to:
a. A "trailer", camper body, or motor home,
which is not shown in the Declarations; or
b. Facilities or equipment used with such
"trailer", camper body or motor home. Fa-
cilities or equipment include but are not
limited to:
(1) Cooking, dining, plumbing or refrigera-
tion facilities;
(2) Awnings or cabanas; or
(3) Any other facilities or equipment used
with a "trailer", camper body, or motor
home.
This Exclusion (8.) does not apply to a:
a. "Trailer", and its facilities or equipment,
which you do not own; or
b. "Trailer", camper body, or the facilities or
equipment in or attached to the "trailer" or
camper body, which you:
(1) Acquire during the policy period; and
(2) Ask us to insure within 14 days after you
become the owner.
9. Loss to any "non-owned auto" when used by
you or any "family member" without a reason-
able belief that you or that "family member"
are entitled to do so.
10. Loss to equipment designed or used for the
detection or location of radar or laser.
11. Loss to any custom furnishings or equipment in
or upon any pickup or van. Custom furnishings
or equipment include but are not limited to:
a. Special carpeting or insulation;
b. Furniture or bars;
c. Height-extending roofs; or
d. Custom murals, paintings or other decals or
graphics.
This Exclusion (11.) does not apply to a
cap, cover or bedliner in or upon any "your
covered auto" which is a pickup.
12. Loss to any "non-owned auto" being main-
tained or used by any person while employed
or otherwise engaged in the "business" of:
a. Selling;
b. Repairing;
c. Servicing;
d. Storing; or
e. Parking;
vehicles designed for use on public highways.
This includes road testing and delivery.
13. Loss to "your covered auto" or any "non-owned
auto", located inside a facility designed for
racing, for the purpose of:
a. Competing in; or
b. Practicing or preparing for;
any prearranged or organized racing or speed
contest.
14. Loss to, or loss of use of, a "non-owned auto"
rented by:
a. You; or
b. Any "family member";
if a rental vehicle company is precluded from
recovering such loss or loss of use, from you
or that "family member", pursuant to the pro-
visions of any applicable rental agreement or
state law.
LIMIT OF LIABILITY
A. Our limit of liability for loss will be the lesser of
the:
1. Actual cash value of the stolen or damaged
property; or
2. Amount necessary to repair or replace the
property with other property of like kind and
quality.
However, the most we will pay for loss to:
1. Any "non-owned auto" which is a trailer is
$500.
2. Equipment designed solely for the reproduc-
tion of sound, including any accessories used
with such equipment, which is installed in loca-
tions not used by the auto manufacturer for
installation of such equipment or accessories,
is $1,000.
B. An adjustment for depreciation and physical
condition will be made in determining actual cash
value in the event of a total loss.
C. If a repair or replacement results in better than
like kind or quality, we will not pay for the amount
of the betterment.
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Copyright, Insurance Services Office, Inc., 1997
PP 00 01 06 98
PAYMENT OF LOSS
We may pay for loss in money or repair or replace
the damaged or stolen property. We may, at our
expense, return any stolen property to:
1. You; or
2. The address shown in this policy.
If we return stolen property we will pay for any dam-
age resulting from the theft. We may keep all or part
of the property at an agreed or appraised value.
If we pay for loss in money, our payment will include
the applicable sales tax for the damaged or stolen
property.
NO BENEFIT TO BAILEE
This insurance shall not directly or indirectly benefit
any carrier or other bailee for hire.
OTHER SOURCES OF RECOVERY
If other sources of recovery also cover the loss, we
will pay only our share of the loss. Our share is the
proportion that our limit of liability bears to the total of
all applicable limits. However, any insurance we
provide with respect to a "non-owned auto" shall be
excess over any other collectible source of recovery
including, but not limited to:
1. Any coverage provided by the owner of the
"non-owned auto";
2. Any other applicable physical damage insur-
ance;
3. Any other source of recovery applicable to the
loss.
APPRAISAL
A. If we and you do not agree on the amount of loss,
either may demand an appraisal of the loss. In
this event, each party will select a competent ap-
praiser. The two appraisers will select an umpire.
The appraisers will state separately the actual
cash value and the amount of loss. If they fail to
agree, they will submit their differences to the
umpire. A decision agreed to by any two will be
binding. Each party will:
1. Pay its chosen appraiser; and
2. Bear the expenses of the appraisal and umpire
equally.
B. We do not waive any of our rights under this pol-
icy by agreeing to an appraisal.
PART E – DUTIES AFTER AN ACCIDENT OR LOSS
We have no duty to provide coverage under this
policy unless there has been full compliance with the
following duties:
A. We must be notified promptly of how, when and
where the accident or loss happened. Notice
should also include the names and addresses of
any injured persons and of any witnesses.
B. A person seeking any coverage must:
1. Cooperate with us in the investigation, settle-
ment or defense of any claim or suit.
2. Promptly send us copies of any notices or
legal papers received in connection with the
accident or loss.
3. Submit, as often as we reasonably require:
a. To physical exams by physicians we select.
We will pay for these exams.
b. To examination under oath and subscribe
the same.
4. Authorize us to obtain:
a. Medical reports; and
b. Other pertinent records.
5. Submit a proof of loss when required by us.
C. A person seeking Uninsured Motorists Coverage
must also:
1. Promptly notify the police if a hit-and-run
driver is involved.
2. Promptly send us copies of the legal papers if
a suit is brought.
D. A person seeking Coverage For Damage To Your
Auto must also:
1. Take reasonable steps after loss to protect
"your covered auto" or any "non-owned auto"
and their equipment from further loss. We will
pay reasonable expenses incurred to do this.
2. Promptly notify the police if "your covered
auto" or any "non-owned auto" is stolen.
3. Permit us to inspect and appraise the dam-
aged property before its repair or disposal.
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Copyright, Insurance Services Office, Inc., 1997
Page 11 of 12
PART F – GENERAL PROVISIONS
BANKRUPTCY
Bankruptcy or insolvency of the "insured" shall not
relieve us of any obligations under this policy.
CHANGES
A. This policy contains all the agreements between
you and us. Its terms may not be changed or
waived except by endorsement issued by us.
B. If there is a change to the information used to
develop the policy premium, we may adjust your
premium. Changes during the policy term that
may result in a premium increase or decrease in-
clude, but are not limited to, changes in:
1. The number, type or use classification of in-
sured vehicles;
2. Operators using insured vehicles;
3. The place of principal garaging of insured
vehicles;
4. Coverage, deductible or limits.
If a change resulting from A. or B. requires a pre-
mium adjustment, we will make the premium adjust-
ment in accordance with our manual rules.
C. If we make a change which broadens coverage
under this edition of your policy without additional
premium charge, that change will automatically
apply to your policy as of the date we implement
the change in your state. This Paragraph (C.)
does not apply to changes implemented with a
general program revision that includes both
broadenings and restrictions in coverage, whether
that general program revision is implemented
through introduction of:
1. A subsequent edition of your policy; or
2. An Amendatory Endorsement.
FRAUD
We do not provide coverage for any "insured" who
has made fraudulent statements or engaged in
fraudulent conduct in connection with any accident or
loss for which coverage is sought under this policy.
LEGAL ACTION AGAINST US
A. No legal action may be brought against us until
there has been full compliance with all the terms
of this policy. In addition, under Part A, no legal
action may be brought against us until:
1. We agree in writing that the "insured" has an
obligation to pay; or
2. The amount of that obligation has been finally
determined by judgment after trial.
B. No person or organization has any right under this
policy to bring us into any action to determine the
liability of an "insured".
OUR RIGHT TO RECOVER PAYMENT
A. If we make a payment under this policy and the
person to or for whom payment was made has a
right to recover damages from another we shall be
subrogated to that right. That person shall do:
1. Whatever is necessary to enable us to exer-
cise our rights; and
2. Nothing after loss to prejudice them.
However, our rights in this Paragraph (A.) do not
apply under Part D, against any person using
"your covered auto" with a reasonable belief that
that person is entitled to do so.
B. If we make a payment under this policy and the
person to or for whom payment is made recovers
damages from another, that person shall:
1. Hold in trust for us the proceeds of the recov-
ery; and
2. Reimburse us to the extent of our payment.
POLICY PERIOD AND TERRITORY
A. This policy applies only to accidents and losses
which occur:
1. During the policy period as shown in the Decla-
rations; and
2. Within the policy territory.
B. The policy territory is:
1. The United States of America, its territories or
possessions;
2. Puerto Rico; or
3. Canada.
This policy also applies to loss to, or accidents in-
volving, "your covered auto" while being trans-
ported between their ports.
TERMINATION
A. Cancellation
This policy may be cancelled during the policy
period as follows:
1. The named insured shown in the Declarations
may cancel by:
a. Returning this policy to us; or
b. Giving us advance written notice of the
date cancellation is to take effect.
2. We may cancel by mailing to the named in-
sured shown in the Declarations at the address
shown in this policy:
a. At least 10 days notice:
(1) If cancellation is for nonpayment of
premium; or
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Copyright, Insurance Services Office, Inc., 1997
PP 00 01 06 98
(2) If notice is mailed during the first 60
days this policy is in effect and this is
not a renewal or continuation policy; or
b. At least 20 days notice in all other cases.
3. After this policy is in effect for 60 days, or if
this is a renewal or continuation policy, we will
cancel only:
a. For nonpayment of premium; or
b. If your driver's license or that of:
(1) Any driver who lives with you; or
(2) Any driver who customarily uses "your
covered auto";
has been suspended or revoked. This must
have occurred:
(1) During the policy period; or
(2) Since the last anniversary of the original
effective date if the policy period is
other than 1 year; or
c. If the policy was obtained through material
misrepresentation.
B. Nonrenewal
If we decide not to renew or continue this policy,
we will mail notice to the named insured shown in
the Declarations at the address shown in this pol-
icy. Notice will be mailed at least 20 days before
the end of the policy period. Subject to this notice
requirement, if the policy period is:
1. Less than 6 months, we will have the right not
to renew or continue this policy every 6
months, beginning 6 months after its original
effective date.
2. 6 months or longer, but less than one year, we
will have the right not to renew or continue this
policy at the end of the policy period.
3. 1 year or longer, we will have the right not to
renew or continue this policy at each anniver-
sary of its original effective date.
C. Automatic Termination
If we offer to renew or continue and you or your
representative do not accept, this policy will
automatically terminate at the end of the current
policy period. Failure to pay the required renewal
or continuation premium when due shall mean
that you have not accepted our offer.
If you obtain other insurance on "your covered
auto", any similar insurance provided by this pol-
icy will terminate as to that auto on the effective
date of the other insurance.
D. Other Termination Provisions
1. We may deliver any notice instead of mailing
it. Proof of mailing of any notice shall be suffi-
cient proof of notice.
2. If this policy is cancelled, you may be entitled
to a premium refund. If so, we will send you
the refund. The premium refund, if any, will be
computed according to our manuals. However,
making or offering to make the refund is not a
condition of cancellation.
3. The effective date of cancellation stated in the
notice shall become the end of the policy pe-
riod.
TRANSFER OF YOUR INTEREST IN THIS POLICY
A. Your rights and duties under this policy may not
be assigned without our written consent. However,
if a named insured shown in the Declarations dies,
coverage will be provided for:
1. The surviving spouse if resident in the same
household at the time of death. Coverage ap-
plies to the spouse as if a named insured
shown in the Declarations; and
2. The legal representative of the deceased per-
son as if a named insured shown in the Decla-
rations. This applies only with respect to the
representative's legal responsibility to maintain
or use "your covered auto".
B. Coverage will only be provided until the end of the
policy period.
TWO OR MORE AUTO POLICIES
If this policy and any other auto insurance policy
issued to you by us apply to the same accident, the
maximum limit of our liability under all the policies
shall not exceed the highest applicable limit of liability
under any one policy.